Canadian 88 Energy Corp. said it has opened data rooms to allowpotential acquirers access to confidential information. TheCanadian exploration and production company put itself up for salein October after Duke Energy rescued it by buying a controllingstake. On Oct. 10, the company announced that its board hadestablished a special committee to review strategic alternativesand identify opportunities to enhance shareholder value. The boardsaid strong fundamentals for high quality natural gas assets andprospects are not reflected in current stock price valuations andare more likely to be realized through such a strategic reviewprocess. Canadian 88 stated several reasons for initiating thereview process, including high gas prices, large working interestsin significant company-operated gas fields, an inventory ofexcellent gas exploration prospects, the world class potential ofthe company’s East Coast holdings, imminent expiration of currentgas hedges and tax pools in excess of $400 million.
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EIA: Production Up, Prices To Stay Above $4
Natural gas production is on the upswing, according to EnergyInformation Administration’s November Short Term Energy Outlook.The agency said the “torrid pace” of gas drilling activity in NorthAmerica is starting to pay off. As a result, wellhead gas pricesshould ease further away from the $5/Mcf level through 2001 thanpreviously projected. Prices this winter, however, should stayabove $4.
EIA: Production Up, Prices To Stay Above $4
Natural gas production is on the upswing, according to EnergyInformation Administration’s November Short Term Energy Outlook.The agency said the “torrid pace” of gas drilling activity in NorthAmerica is starting to pay off. As a result, wellhead gas pricesshould ease further away from the $5/Mcf level through 2001 thanpreviously projected. Prices this winter, however, should stayabove $4.
Industry Briefs
Southern California Gas Co. said it is launching an informationcampaign this week to raise awareness of high natural gas prices.The campaign will include ads in major local newspapers and onradio stations, inserts in gas bills and direct mailings to alertcustomers to higher gas prices, explain the reasons for theincreases and outline their options to take greater control oftheir gas bills. SoCalGas is projecting that a monthly natural gaswinter bill for a typical residential customer will increase about$20, to $70 from $50. The company noted that unusually high demandthis summer has resulted in lower-than-expected gas storage levelsnationwide. This summer’s peak usage of natural gas on SoCal’ssystem for the first time exceeded the previous winter’s peak.SoCalGas is the nation’s largest gas distribution utility serving18 million consumers through 5 million meters. The company’sservice territory encompasses 23,000 square miles throughoutcentral and Southern California.
J.P. Morgan: Tech Boom = Gas Company Boom
In the new economy, while energy-intensive industrial businesslags, the growing information technology (IT) and telecom sectors”should account for an increasingly large piece of the total energypie,” according to an industry analysis report released by J.P.Morgan. And some will profit more than others, the financial giantsaid, in naming seven natural gas-based companies the winners inthe new market.
EIA Predicts Supply Shortfall Will Linger Through Winter
The Energy Information Administration said in its SeptemberShort Term Energy Outlook it is projecting natural gas prices atthe wellhead will increase by about 87% this winter (October-March)compared to last winter. Residential prices for gas are expected torise on average by 27% compared to last year. For the entire year,the average wellhead price for natural gas is projected to be$3.40/Mcf, the highest annual wellhead price on record (ininflation-adjusted terms, it would be the highest annual averageprice since 1985).
EIA Predicts Supply Shortfall Will Linger Through Winter
The Energy Information Administration said yesterday in itsSeptember Short-Term Energy Outlook it is projecting natural gasprices at the wellhead will increase by about 87% this winter(October-March) compared to last winter. Residential prices for gasare expected to rise on average by 27% compared to last year. Forthe entire year, the average wellhead price for natural gas isprojected to be $3.40/Mcf, the highest annual wellhead price onrecord (in inflation-adjusted terms, it would be the highest annualaverage price since 1985).
EIA: Supply Concerns Persist, Demand Strong
The Energy Information Administration warned last week in itsShort Term Energy Outlook that recent natural gas market activity”reveals the backdrop of vulnerability…..to potential supplyshortfalls,” particularly in light of increasing demand from thepower sector and the winter heating season approaching.
EIA: Supply Concerns Persist, Demand Strong
The Energy Information Administration warned yesterday in itsShort Term Energy Outlook that recent natural gas market activity”reveals the backdrop of vulnerability…..to potential supplyshortfalls,” particularly in light of increasing demand from thepower sector and the winter heating season approaching.
EIA Expects Highest Average Wellhead Prices Since 1985
The U.S. Department of Energy’s Energy InformationAdministration said on Friday it is expecting the highest averagegas wellhead prices (nominal) in history this year and the highestprices in real (inflation adjusted) terms since 1985.
